Nokia (NYSE:NOK) Releases Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Nokia (NYSE:NOK) released its earnings results on Thursday. The technology company reported $0.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.07 by $0.01, Zacks reports. Nokia had a net margin of 4.02% and a return on equity of 9.05%. The firm had revenue of $5.50 billion during the quarter, compared to analyst estimates of $5.57 billion. During the same period last year, the business earned $0.04 earnings per share. The business’s revenue was up 8.4% on a year-over-year basis.

Here are the key takeaways from Nokia’s conference call:

• Q2 results improved meaningfully, with net sales up 9%, gross margin rising to 46%, and operating margin increasing to 9%. Management said Nokia remains on track to finish somewhat above the midpoint of its full-year operating profit guidance.
• AI & Cloud was the standout growth engine, as sales more than doubled year over year to EUR 446 million and order intake reached EUR 2.8 billion. Management said demand is being driven by data center interconnect and scale-out fabrics, though they cautioned that orders can be lumpy.
• Network Infrastructure performed strongly, with sales up 12% and Optical Networks up 20%, helped by AI-related demand and Infinera integration benefits. Gross margin in the segment improved to 42.7%, and IP Networks also showed solid growth.
• Nokia is pushing major AI-RAN and optical capacity investments, including the launch of its first commercial AI-RAN platform and expansions of indium phosphide manufacturing in the U.S. The company expects AI-RAN pilots by the end of 2026 and commercialization in 2027, while new fab capacity is intended to ease supply constraints.
• Cash flow and restructuring remain near-term drags, with free cash flow negative EUR 732 million in Q2 and full-year free cash flow conversion now expected toward the low end of the 55%-75% range. Nokia also said restructuring charges in 2026 will be about EUR 800 million, even as it works toward EUR 1.2 billion in cumulative cost savings from its broader restructuring program.

Nokia Stock Performance

NOK stock traded down $0.40 during mid-day trading on Thursday, reaching $9.88. The company had a trading volume of 113,669,596 shares, compared to its average volume of 80,915,508. Nokia has a one year low of $4.00 and a one year high of $17.45. The company has a quick ratio of 1.32, a current ratio of 1.57 and a debt-to-equity ratio of 0.11. The stock has a market capitalization of $56.76 billion, a P/E ratio of 61.50, a P/E/G ratio of 1.51 and a beta of 1.17. The stock’s 50-day simple moving average is $13.56 and its two-hundred day simple moving average is $10.25.

Key Stories Impacting Nokia

Here are the key news stories impacting Nokia this week:

• Positive Sentiment: Nokia said Q2 sales rose on a constant-currency basis, with Network Infrastructure up 12% and AI & Cloud customer sales surging 105%, highlighting strong demand tied to data-center and AI spending. Nokia Corporation Report for Q2 and Half Year 2026
• Positive Sentiment: The company beat quarterly EPS estimates at $0.08 versus $0.07 expected and raised its full-year profit outlook, suggesting management sees momentum continuing. Nokia Q2 profit beat on AI demand
• Positive Sentiment: Management said AI and cloud order intake reached €2.8 billion in the quarter and sales in that segment more than doubled, reinforcing the bullish AI narrative around the stock. Nokia says AI, cloud boosted sales in second quarter
• Neutral Sentiment: Nokia also provided recast financial information after reclassifying some businesses as discontinued operations; this is mainly an accounting presentation change and is unlikely to be a direct driver of the stock. Nokia provides recast comparative financial information reflecting the presentation of Fixed Wireless Access CPE and Enterprise Campus Edge businesses as discontinued operations
• Neutral Sentiment: Separately, Nokia and NestAI unveiled AI-enabled command-and-control tools for deployable 5G defense networks, an incremental technology win but not likely a major near-term earnings driver. Nokia (HLSE:NOKIA) Delivers AI Led Defense Control For Deployable 5G Networks

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the stock. Nordea Equity Research upgraded shares of Nokia from a “hold” rating to a “buy” rating in a research report on Friday, April 24th. Barclays reaffirmed an “underweight” rating on shares of Nokia in a research note on Wednesday, April 29th. The Goldman Sachs Group raised Nokia from a “sell” rating to a “neutral” rating in a research note on Monday, March 30th. Argus upgraded shares of Nokia from a “hold” rating to a “buy” rating and set a $15.00 price target for the company in a research note on Monday, April 27th. Finally, JPMorgan Chase & Co. upped their price objective on shares of Nokia from $14.00 to $21.00 and gave the company an “overweight” rating in a research note on Friday, June 12th. Thirteen equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, Nokia has a consensus rating of “Moderate Buy” and a consensus price target of $12.57.

Institutional Investors Weigh In On Nokia

A number of institutional investors have recently modified their holdings of NOK. Wexford Capital LP acquired a new position in shares of Nokia during the third quarter worth approximately $29,000. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Nokia during the third quarter worth $34,000. CIBC Private Wealth Group LLC raised its holdings in Nokia by 86.1% during the fourth quarter. CIBC Private Wealth Group LLC now owns 5,994 shares of the technology company’s stock worth $39,000 after acquiring an additional 2,773 shares in the last quarter. Barclays PLC acquired a new position in shares of Nokia in the fourth quarter valued at $40,000. Finally, EP Wealth Advisors LLC acquired a new position in Nokia in the 2nd quarter valued at $54,000. Institutional investors and hedge funds own 5.28% of the company’s stock.

About Nokia

Nokia Corporation, headquartered in Espoo, Finland, is a global telecommunications and technology company with roots dating back to 1865. Over its long history the company moved from forestry and cable operations into electronics and telecommunications, becoming widely known in the 1990s and 2000s for its mobile phones. In recent years Nokia refocused its business toward network infrastructure, software and technology licensing, and research and development, following the divestiture of its handset manufacturing business and the acquisition of Alcatel?Lucent in 2016, which brought Bell Labs into its portfolio.

Today Nokia’s core activities center on designing, building and supporting communications networks and related software.